What is prioritization matrix in SAP EPM-SM - Strategy Management?

SAP Term: prioritization matrix

• Component: EPM-SM

• Component Name: Strategy Management

• Description: A graph showing the relationship between initiatives importance and either urgency, or schedule status or budget status.

Smart SAP Assistant

• Key Concepts: 
  A prioritization matrix is a tool used in SAP EPM-SM Strategy Management to help prioritize and evaluate strategic initiatives. It is a visual representation of the relative importance of each initiative, allowing users to quickly identify which initiatives should be given the highest priority. The matrix is composed of two axes: one for the relative importance of each initiative, and one for the relative difficulty of achieving it. 
  
  How to use it: 
  To use a prioritization matrix, users must first assign a score to each initiative on both axes. The score should reflect the relative importance and difficulty of achieving the initiative. Once all initiatives have been scored, they can be plotted on the matrix. This will allow users to quickly identify which initiatives should be given the highest priority. 
  
  Tips & Tricks: 
  When assigning scores to initiatives, it is important to consider both the importance and difficulty of achieving them. It is also important to consider any external factors that may affect the success of an initiative, such as market conditions or customer feedback. Additionally, it is important to remember that the scores are relative; a score of 5 does not necessarily mean that an initiative is five times more important than another with a score of 1. 
  
  Related Information: 
  Prioritization matrices are just one tool used in SAP EPM-SM Strategy Management. Other tools include Balanced Scorecards, SWOT Analysis, and Portfolio Analysis. Additionally, there are many other tools available for strategic planning and decision-making, such as PEST Analysis and Value Chain Analysis.